WA RCW Laws and the UCC pertaining to forclosure

8/8/2019 WA RCW Laws and the UCC pertaining to forclosure

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RCW 62A.3-201Negotiation.

(a) "Negotiation" means a transfer of possession, whether voluntary or involuntary, of an instrument by person other than the issuer to a person who thereby becomes its holder.

(b) Except for negotiation by a remitter, if an instrument is payable to an identified person, negotiatiorequires transfer of possession of the instrument and its indorsement by the holder. If an instrument ispayable to bearer, it may be negotiated by transfer of possession alone.

RCW 62A.3-203Transfer of instrument; rights acquired by transfer.

(a) An instrument is transferred when it is delivered by a person other than its issuer for the purpose ofgiving to the person receiving delivery the right to enforce the instrument.

(b) Transfer of an instrument, whether or not the transfer is a negotiation, vests in the transferee anyright of the transferor to enforce the instrument, including any right as a holder in due course, but thetransferee cannot acquire rights of a holder in due course by a transfer, directly or indirectly, from aholder in due course if the transferee engaged in fraud or illegality affecting the instrument.

The transferee engaged in fraud or illegality affecting the instrument by claiming to be the new lenderwith no required documentation or proof thereby fraudulently collecting monies from the borrower on sa

deed of trust.

(c) Unless otherwise agreed, if an instrument is transferred for value and the transferee does notbecome a holder because of lack of indorsement by the transferor, the transferee has a specificallyenforceable right to the unqualified indorsement of the transferor, but negotiation of the instrument doesnot occur until the indorsement is made.

(d) If a transferor purports to transfer less than the entire instrument, negotiation of the instrumentdoes not occur. The transferee obtains no rights under this Article and has only the rights of a partialassignee.

PROMISSORY NOTE CANNOT BE DIVIDED !

(d) If a transferor purports to transfer less than the entire instrument, negotiation of the instrument doesnot occur.

RCW 62A.3-204Indorsement.


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(a) "Indorsement" means a signature, other than that of a signer as maker, drawer, or acceptor, thatalone or accompanied by other words is made on an instrument for the purpose of (i) negotiating theinstrument, (ii) restricting payment of the instrument, or (iii) incurring indorser's liability on the instrumenbut regardless of the intent of the signer, a signature and its accompanying words is an indorsementunless the accompanying words, terms of the instrument, place of the signature, or other circumstancesunambiguously indicate that the signature was made for a purpose other than indorsement. For the

purpose of determining whether a signature is made on an instrument, a paper affixed to the instrumentis a part of the instrument.

(b) "Indorser" means a person who makes an indorsement.

(c) For the purpose of determining whether the transferee of an instrument is a holder, anindorsement that transfers a security interest in the instrument is effective as an unqualified indorsemenof the instrument.

(d) If an instrument is payable to a holder under a name that is not the name of the holder,indorsement may be made by the holder in the name stated in the instrument or in the holder's name or

both, but signature in both names may be required by a person paying or taking the instrument for valueor collection.

UCC

3-202. NEGOTIATION SUBJECT TO RESCISSION.

(a) Negotiation is effective even if obtained (i) from an infant, a corporation exceeding itspowers, or a person without capacity, (ii) by fraud, duress, or mistake, or (iii) in breach of dutyor as part of an illegal transaction.

(b) To the extent permitted by other law, negotiation may be rescinded or may be subject toother remedies, but those remedies may not be asserted against a subsequent holder in duecourse or a person paying the instrument in good faith and without knowledge of facts that area basis for rescission or other remedy.

3-203. TRANSFER OF INSTRUMENT; RIGHTS ACQUIRED BY TRANSFER.

(a) An instrument is transferred when it is delivered by a person other than its issuer for thepurpose of giving to the person receiving delivery the right to enforce the instrument.

(b) Transfer of an instrument, whether or not the transfer is a negotiation, vests in thetransferee any right of the transferor to enforce the instrument, including any right as a holderin due course, but the transferee cannot acquire rights of a holder in due course by a transfer,directly or indirectly, from a holder in due course if the transferee engaged in fraud or illegalityaffecting the instrument.

(c) Unless otherwise agreed, if an instrument is transferred for value and the transferee doesnot become a holder because of lack ofindorsement by the transferor, the transferee has a
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specifically enforceable right to the unqualified indorsement of the transferor, but negotiation ofthe instrument does not occur until the indorsement is made.

(d) If a transferor purports to transfer less than the entire instrument, negotiation of theinstrument does not occur. The transferee obtains no rights under this Article and has only therights of a partial assignee.

3-305. DEFENSES AND CLAIMS IN RECOUPMENT.

(a) Except as otherwise provided in this section, the right to enforce the obligation of a party topay an instrument is subject to the following:

(1) a defense of the obligor based on (i) infancy of the obligor to the extent it is a defense toa simple contract, (ii) duress, lack of legal capacity, or illegality of the transaction which,

under other law, nullifies the obligation of the obligor, (iii) fraud that induced the obligor tosign the instrument with neither knowledge nor reasonable opportunity to learn of itscharacter or its essential terms, or (iv) discharge of the obligor in insolvency proceedings;

The original lender produced the note while in violation of RCW 61.24.010.
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WA RCW Laws and the UCC pertaining to forclosure